Gold spot price is trading at 1556.65 USD per troy ounce.
Will gold's recent upwards price run continue? Yes. I think spot gold per troy ounce could well reach 2000 USD in 2020. Why? Gold has usually two price drivers - a store of value in times of monetary debasement, understand inflation or money printing, and a safe heaven. Both factors for a price rise of gold seem well established. The Federal Reserve, European Central Bank and the Bank of Japan are all printing money, as if there is no tomorrow. Political risks like the war in Syria, tensions in the Middle East, and now the coronavirus abound.
Yes, the sentiment on the US stock market especially seems excessively positive, which is detrimental for a possible gold price rise. But I think the money printing of central banks will prevail and the positive environment on stock markets will actually prove a good fertile ground for gold spot and futures prices to rise along with the stock prices of gold miners.
There is political tension between major global powers like USA, Russia and China that is unprecedented for decades. The Middle East often flares in conflicts. The coronavirus crisis in China is threatening to engulf the whole world. All these conditions support and will support gold prices in the near future.
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Petar
Vladimirov Posledovich is not liable for any investment losses incurred
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Respectfully yours,
Petar Posledovich
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